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Council Tax Support Scheme

Council Tax Support Scheme. Mark Ransom Assessment Manager. Background to the change. Announced in the June 2010 emergency budget with 10% reduction in funding – actual funding cut for Cornwall is nearer to 12.5% Consultation undertaken by DCLG in summer 2011

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Council Tax Support Scheme

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  1. Council Tax Support Scheme • Mark Ransom • Assessment Manager

  2. Background to the change • Announced in the June 2010 emergency budget with 10% reduction in funding – actual funding cut for Cornwall is nearer to 12.5% • Consultation undertaken by DCLG in summer 2011 • Response to the consultation published late 2011 • Local authorities started detailed design work early 2012 • Requirement to consult on the preferred option – undertaken during autumn 2012 • National scheme for pension age customers – largely replicates the current CTB scheme which has been in existence since April 1993.

  3. Funding the new scheme • At present all CTB expenditure is funded by DWP through subsidy arrangements in the same way that HB is funded. • Under the new scheme the Council will receive an annual up front grant • Grant for 2013/14 is around £40m • Subsidy for CTB in 2011/12 was£45.6m • When combined with growth in expenditure in 2012/13 the funding shortfall is around £6m

  4. Cornwall’s caseload • Total benefit caseload of 59,623 for HB / CTB • 53,815 in receipt of CTB • 26,729 working age cases (49% of caseload) needing to absorb the funding cut • Passported cases 15,601* • Disabled 2,158 • Lone parents 3,331 • Other 5,639 • * significant number of these claimants will also be classed as disabled

  5. New scheme for Cornwall • In order to achieve a broadly cost neutral replacement for CTB the following scheme has been adopted by Full Council: • Maximum level of help reduced to 75% of liability from the current level of 100% of liability • Liability used to calculate CTS capped at a Band D charge • Capital limit capped at £6,000 • Removal of backdating • Removal of underlying entitlement • Removal of second adult rebate

  6. New scheme for Cornwall • Needs to remain aligned with HB for ease of administration in the short term • Will largely replicate current provisions within CTB regulations • Families and disabled customers still receive additional support and protection through higher applicable amounts, additional premiums and certain income disregards • Means test process will still apply • Appeal route will now be through the Valuation Tribunal for England, potential for 2 separate appeals if combined with a dispute around the HB element

  7. CTB to CTS • Existing customers will automatically transfer to the new scheme on 1 April 2013 • No need to submit a new application • New entitlements have already been calculated and annual CTAX bills and CTS entitlement letters will arrive with customers during week commencing 11 March 2013 • Claims outstanding on 31 March will be assessed under both schemes spanning 2 financial years

  8. Exceptional Relief & Transitional Support fund • £100,000 used to form an Exceptional Relief fund • £1m set aside to form a transitional support fund for 2013/14 • Aim of the scheme is to help the most vulnerable as they adjust to having to pay more CTAX or paying CTAX for the first time • Help will be capped at 50% of any shortfall and available to working age applicants • A further £150,000 has also been allocated to CAB to further support individuals and families with debt, budgeting and welfare benefits advice

  9. Exceptional Relief & Transitional Support fund • Awards will be discretionary and similar in nature to Discretionary Housing Payments • Will be based on the customer’s income and expenditure • The customer will be expected to discuss the most appropriate methods for paying their CTAX liability and accept signposting to debt and budgeting advice where appropriate • Application forms will be available week commencing 11 March 2013

  10. How does Cornwall’s scheme compare? • East Devon limit liability to 80% • Exeter City Council 80% • Mid Devon DC 80% • North Devon 75% • Torridge 75% • Torbay 75% • Plymouth City 75%

  11. More information and making a claim • Visit our website at: • www.cornwall.gov.uk • Telephone 0300 1234 121 • You can now apply on line via our website and over the telephone on the number above • https://democracy.cornwall.gov.uk/documents/b13364/Supplement%20Agenda%20Pack%2029th-Jan-2013%2010.30%20Cornwall%20Council.pdf?T=9

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